The city of Large Pointe Farms, located just outside Detroit, Michigan, adopted a proactive approach to regulate the automatic distributors of cryptocurrency tickets, although it does not have such machines inside its borders. The municipal council unanimously adopted an order on Tuesday, implementing multiple restrictions aimed at protecting residents from potential scams. This decision was caused by a report by a local resident defrauded in a cryptographic automatic counter in the neighboring city of St. Clair Shores.
The prescription requires that any future City crypto guide window be registered with the Ministry of Public Security and that operators must obtain a commercial license. In addition, machines must display compulsory warnings and consumer protection opinions written on the risks of fraud and the irreversibility of transactions. The regulations also impose transaction limits for new users, capping daily transactions at $ 1,000 and setting an overall limit of $ 5,000 in the first two weeks. These limits are deleted after the period of 14 days, assuming that users will become more familiar with the machines at that time.
The member of the Lev Wood Council stressed the importance of transparency in the protection of residents against scams. “The crooks tell people to go and put money in these machines, and this is a very non -transparent situation,” said Wood at the meeting. “What we want to do with our prescription this evening is to improve transparency and provide some help with our residents.”
The prescription makes a big point Farms probably the first municipality of Michigan to regulate the automatic distributors of cryptographic tickets. This preventive measure intervenes in the wake of warnings at the level of the State issued by the Attorney General of Michigan in April, highlighting the risks associated with the cryptographic atm scams. Local reports had also covered cases of such scams in the city.
Carson Gat, a representative of the digital currency company based in Chicago and ATM operator, attended Reunion to share his experiences. He told an incident where the company prevented an elderly woman from being scammed, stressing the importance of implementing limits and periods of detention for new users. The company has operated in Michigan since 2019 and officially obtained a silver issuer license in April.
Regulations in Large Farms point are part of a broader trend in increased failure on automatic distributors of cryptographic tickets. Several other states have also taken measures to repress automatic distributors of cryptographic tickets this year. These measures reflect an increasing concern concerning the potential of fraud and the need for greater transparency and consumer protection in the cryptocurrency sector.
